McKinsey, in its new book “Procurement 20/20”, pointed out that lack of CFO focus on procurement excellence has a negative impact on the level of savings and organizational improvement that procurement leadership can bring.
Collaboration between procurement and finance is necessary to mitigate risks, increase cash flow, manage working capital, cut costs and above all, bring more savings to the bottom line.
Procurement is largely judged by the savings it generates through different projects. However, what procurement may consider savings, finance may consider cost avoidance. Thus begins the argument over what does or does not constitute savings. But, if for each project, savings are calculated by keeping finance in the loop, won't that help solve the problem? And this is where technology comes to the rescue.
Read this whitepaper to know how.